Turbocharging Energy Stocks With The ERX ETF
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Andrew HechtInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryDirexion Daily Energy Bull 2X ETF surged 84.4% in Q1 2026, outperforming XLE’s 37% gain amid energy sector strength.U.S. energy companies benefit from geopolitical tensions, supportive U.S. policy, and global supply concerns, positioning XLE and ERX for continued profitability.ERX’s leverage offers high reward but carries significant risk and time decay, making it suitable only for short-term tactical trades with disciplined stops.I rate ERX a hold, viewing both ERX and ERY as trading — not investment — tools, but favor ERX given the positive outlook for energy-related stocks.Looking for more investing ideas like this one? Get them exclusively at Hecht Commodity Report. Learn More » Getty Images In an August 7, 2025, Seeking Alpha article on the Direxion Daily Energy 2X Shares (ERX), I concluded with the following: Steady oil prices in August 2025, and the U.S. administration’s support for fossil fuels through its “drill-baby-drill” and “frack-baby-frack” policies, support U.S. oil and oil-related companies’ earnings. Trading theseThis article was written byAndrew Hecht31.23K FollowersFollowAndrew Hecht is a 35-year Wall Street veteran covering commodities and precious metals. He runs the investing group The Hecht Commodity Report, one of the most comprehensive commodities services available. It covers the market movements of 20 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.